ZURICH/WASHINGTON– Zurich Insurance coverage Group will leave of Russia’s Nord Stream 2 job in the face of looming U.S. sanctions against European business that support construction of the $11 billion gas pipeline, two sources knowledgeable about the circumstance stated.
The U.S. State Department this month told business which it thinks are helping to build the pipeline that they face a risk of sanctions as the outbound Trump administration prepares a final round of punitive procedures versus the job, Reuters reported this week.
Zurich, which has a big U.S. company, is one of around 20 insurance providers in a consortium backing the project, one person acquainted with the situation stated.
The Swiss insurance company decreased to talk about Saturday on specific consumers, but stated: “Zurich has an extensive compliance structure in place and is devoted to fully adhere to any suitable sanctions guidelines.”
The Nord Stream 2 consortium said on Friday that preparatory work to complete the subsea gas pipeline to Germany in Danish waters can go ahead, pointing to the latest notifications by the Danish Maritime Authority.
Denmark’s Nautiskinformation notified carriers on Thursday that restricted locations near Bornholm would be developed beginning on Friday for the pipe laying vessel Fortuna, helped by building and supply vessels.
Building And Construction of Nord Stream 2 was at first stopped in December 2019 following a sanctions hazard from the United States, which wishes to cut Europe’s reliance on Russian energy and sell its own melted gas to the region.
Nord Stream 2, led by state energy company Gazprom, is designed to double capacity of the existing undersea Nord Stream gas pipeline from Russia to Germany to 110 billion cubic meters per year, majority of Russia’s total pipeline gas exports to Europe. (Reporting by Michael Shields and Timothy Gardner, editing by Louise Heavens)